Anchoring Heuristic Comes into Play When Consumers Base Their Predictions

question 2

True/False

Anchoring heuristic comes into play when consumers base their predictions on the quickness and ease with which a particular example of an outcome comes to mind.

---

Definitions:

Direct Method

In cash flow reporting, this accounting method lists major cash inflows and outflows directly, showing the exact sources and uses of cash during the reporting period.

Gain on Sale

The financial benefit realized when selling an asset for more than its book value or cost basis.

Operating Activities

Activities directly related to the day-to-day operations of a business, including revenue and expense transactions affecting net income.

Operating Activities

Activities that relate directly to the primary operations of the company, such as manufacturing, distributing, marketing, and selling a product or service.